In the United States, gambling is subject to a variety of legal restrictions. In 2008, gambling activities generated gross revenues (the difference between the total amounts wagered minus the funds or "winnings" returned to the players) of $92.27 billion in the United States.[1] The American Gaming Association, an industry trade group, states that gaming in the U.S. is a $240 billion industry, employing 1.7 million people in 40 states.[2] In 2016, gaming taxes contributed $8.85 billion in state and local tax revenues.[3] Critics of gambling argue it leads to increased political corruption, compulsive gambling, and higher crime rates. Others argue that gambling is a type of regressive tax on the individuals in local economies where gambling venues are located. Many levels of government have authorized multiple forms of gambling in an effort to raise money for needed services without raising direct taxes. These include everything from bingo games in church basements, to multimillion-dollar poker tournaments. Sometimes states advertise revenues from certain games to be devoted to particular needs, such as education. When New Hampshire authorized a state lottery in 1963, it represented a major shift in social policy. No state governments had previously directly run gambling operations to raise money. Other states followed suit, and now the majority of the states run some type of lottery to raise funds for state operations.  Some states restrict this revenue to specific forms of expenditures, usually oriented toward education, while others allow lottery revenues to be spent on general government.   This has brought about morally questionable issues, such as states' using marketing firms to increase their market share, or to develop new programs when old forms of gambling do not raise as much money. The American Gaming Association breaks gambling down into the following categories:[1] If state-run lotteries are included, then 48 states allow some form of gambling (the exceptions are Hawaii, where gambling was outlawed prior to statehood, and Utah, which has a Latter-day Saint majority population and also bans gambling in the state constitution). However, casino-style gambling is much less widespread. Federal law provides leeway for Native American Trust Land to be used for games of chance if an agreement is put in place between the state and the tribal government (e.g. a "Compact" or "Agreement") under the Indian Gaming Regulatory Act of 1988. As domestic dependent nations, American Indian tribes have used legal protection to open casinos, which has been a contentious political issue in California and other states. In some states, casinos are restricted to "riverboats", large multi-story barges that are permanently moored in a body of water. Other operators, however, have continued to circumvent UIGEA and have continued to service US customers. For this reason, UIGEA has received criticism from notable figures within the gambling industry.[4] On July 1, 2000, a new law took effect in the state of South Carolina, whereby the ownership, possession, or operation of a video poker machine, for either commercial or personal use, became illegal. Violators are subject to prosecution and substantial fines. Through at least 2007, the only type of legalized gambling in that state is the South Carolina Education Lottery.[7] Commercial casinos are founded and run by private or public companies on non-Native American land. There are 24 states (and three U.S. territories) that allow commercial casinos in some form: Arkansas,[8] Colorado, Delaware, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New York, Northern Marianas Islands, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, U.S. Virgin Islands, Virginia, Washington, and West Virginia. The approximately 450 commercial casinos in total produced a gross gambling revenue of $34.11 billion in 2006.[9] The history of Native American commercial gambling began in 1979, when the Seminoles began running bingo games.[10]  Prior to this, the Native Americans had no previous experience with large-scale commercial gambling. Native Americans were familiar with the concept of small-scale gambling, such as placing bets on sporting contests. For example, the Iroquois, Ojibwes, and Menominees would place bets on games of snow snake.[10] Within six years after commercial gambling among Native Americans developed, seventy-five to eighty of the three hundred federally recognized tribes became involved. By 2006, about three hundred Native American groups hosted some sort of gaming.[10] Class I games are "traditional" games that involve little or no wagering. Class II games include bingo, pull-tabs, and certain non-banked card games (poker, cribbage, contract bridge, whist, etc.). Class III games include all casino games (craps, roulette, blackjack, baccarat, slot machines, and other games where the player bets against the house) and games that do not properly fall into classes I or II.[11] Of the 562 federally recognized tribes in 1988, 201 participated in class II or class III gaming by 2001.[10] Tribal gambling had revenues of $14.5 billion in 2002 from 354 casinos. Approximately forty percent of the 562 federally recognized tribes operate gaming establishments.[11] Like other Americans, many indigenous Americans have dissension over the issue of casino gambling. Some tribes are too isolated geographically to make a casino successful, while some do not want non-Native Americans on their land. Though casino gambling is controversial, it has proven economically successful for most tribes, and the impact of American Indian gambling has proven to be far-reaching. Gaming creates many jobs, not only for Native Americans, but also for non-Native Americans, and in this way can positively affect relations with the non-Native American community. On some reservations, the number of non-Native American workers is larger than the number of Native American workers because of the scale of the casino resorts.[12] Also, some tribes contribute a share of casino revenues to the state in which they are located, or to charitable and non-profit causes. For example, the San Manuel Band of Mission Indians of California gave 4 million dollars to the UCLA Law School to establish a center for American Indian Studies. The same tribe also gave $1 million to the state for disaster relief when the area was ravaged by wildfires in 2003.[12] Although casinos have proven successful for both the tribes and the surrounding regions, state residents may oppose construction of Native American casinos, especially if they have competing projects. For example, in November 2003, the state of Maine voted against a $650 million casino project proposed by the Penobscots and Passamaquoddies. The project's objective was to create jobs for the tribes' young people.  The same day the state voted against the Indian casino project, Maine voters approved a plan to add slot machines to the state's harness racing tracks.[12] The National Indian Gaming Commission oversees Native American gaming for the federal government. The National Indian Gaming Commission (NIGC) was established under the Indian Gaming Regulatory Act in 1988. Under the NIGC, Class I gaming is under the sole jurisdiction of the tribe. Class II gaming is governed by the tribe, but it is also subject to NIGC regulation. Class III gaming is under the jurisdiction of the states. For instance, in order for a tribe to build and operate a casino, the tribe must work and negotiate with the state in which it is located. These Tribal-State compacts determine how much revenue the states will obtain from the Indian casinos.[12] The Indian Gaming Regulatory Act requires that gaming revenues be used only for governmental or charitable purposes.[13] The tribal governments determine specifically how gaming revenues are spent.  Revenues have been used to build houses, schools, and roads; to fund health care and education; and to support community and economic development initiatives. Indian gaming is the first and essentially the only economic development tool available on Indian reservations. The National Gaming Impact Study Commission has stated that "no...economic development other than gaming has been found".[13] Tribal governments, though, use gaming revenues to develop other economic enterprises such as museums, malls, and cultural centers. There are currently 30 states that have Native American gaming: Alabama, Alaska, Arizona, California, Colorado, Connecticut, Florida, Idaho, Iowa, Kansas, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Washington, Wisconsin, and Wyoming. The classic lottery is a drawing in which each contestant buys a combination of numbers. Plays are usually non-exclusive, meaning that two or more ticket holders may buy the same combination. The lottery organization then draws the winning combination of 5-8 numbers, usually from 1 to 50, using a randomized, automatic ball tumbler machine. To win, contestants match their combinations of numbers with the drawn combination. The combination may be in any order, except in some "mega ball" lotteries, where the "mega" number for the combination must match the ball designated as the "mega ball" in the winning combination. If there are multiple winners, they split the winnings, also known as the "Jackpot". Winnings are currently subject to federal income taxes as ordinary income. Winnings can be awarded as a yearly annuity or as a lump sum, depending on lottery rules. Most states have state-sponsored and multi-state lotteries. There are only five states that do not sell lottery tickets: Alabama, Alaska, Hawaii, Nevada, and Utah. In some states, revenues from lotteries are designated for a specific budgetary purpose, such as education. Other states put lottery revenue into the general fund. Multi-jurisdictional lotteries generally have larger jackpots due to the greater number of tickets sold. The Mega Millions and Powerball games are the biggest of such lotteries in terms of numbers of participating states. Some state lotteries run games other than the lotteries. Usually, these are in the scratchcard format, although some states use pull-tab games. In either format, cards are sold that have opaque areas. In some games, all of the opaque material is removed to see if the contestant has won, and how much. In other scratchcard games, a contestant must pick which parts of a card to scratch, to match amounts or play another form of game. In 1992, the U.S. Congress passed the Professional and Amateur Sports Protection Act (PASPA). It mandated states not to legalize sports betting apart from parimutuel horse racing, dog racing and jai alai. The sports lotteries conducted in Oregon, Delaware, and Montana were exempt, as well as the licensed sports pools in Nevada.[15][16] It also provided a one-year window for states which operated licensed casino gaming to legalize sports wagering, which New Jersey intended to do but did not reach the deadline. In 2018, PASPA was overturned by the Supreme Court of the United States in Murphy v. National Collegiate Athletic Association, ruling that it conflicted with the Tenth Amendment.[17][18] New Jersey, Delaware, and additional states quickly drafting bills to legalize sports betting soon after.[19][20] States had to determine which department would oversee state-regulated sportsbooks, usually choosing between their respective gambling commissions, lottery boards or, in the case of Kentucky, the state horse racing commission.[21][22] November 2018; effective July 1, 2019.[25] Online sports betting allowed since February 22, 2022.[26] Offered parlay betting and championship futures for the NFL prior to PASPA being struck down; expanded on June 5, 2018[27][28] Effective July 1, 2022, casinos and sportsbooks can start accepting bets on September 1, 2022. [30] March 2023, effective June 28, 2023. In-person sportsbook location bets allowed since September 7, 2023. Online betting allowed since September 28, 2023.[31][32] Only in the 55 out of 64 parishes that voted to legalize sports betting in the November 2020 election.[33] Legalized May 2, 2022. [34]  Online sports betting went live on November 3, 2023, with in person betting allowed but no authorized entity yet licensed. [35] December 2019; in-person sports betting allowed starting March 2020; online and mobile betting allowed starting January 22, 2021[37] May 3, 2019[39] *Online gaming in Montana is only permitted on the premises of gaming facilities. July 17, 2019.[25] Online sports betting allowed since January 8, 2022.[44] July 26, 2019; tribal casinos only; mobile betting not allowed[25] Only at the Dakota Magic Casino and Hotel in Hankinson, owned by the Sisseton-Wahpeton Oyate Tribe[45][46] Legal prior to PASPA but limited; expanded on August 27, 2019[25] Limited to the city of Deadwood; allowed constitutionally as of November 3, 2020[49] Online sports betting was legalized in Vermont on June 14th, 2023. Online sportsbooks are expected to launch in VT early in 2024.[51] According to the Center for Gaming Research University Libraries, legal gambling revenues for 2007 were as follows:[1] ^ a b c "Industry Information: Fact Sheets: Statistics: Gaming revenues for 2007". American Gaming Association. Archived from the original on 2007-09-28. Retrieved 2007-05-19. ^ CasinoReviews (31 January 2024). "CasinoReviews Interviews – Michael Shackleford – The Wizard of Odds". ^ "Arkansas Casinos Open Doors for the First Time". OZARKSFIRST. 2019-04-02. Retrieved 2019-04-06. ^ "Casino State Statistics" (PDF). American Gaming Association. 2004. Archived from the original (PDF) on 2007-09-28. Retrieved 2007-05-18. ^ a b c d Johansen, Bruce. The Praeger Handbook on Contemporary Issues in Native America, Westport, CT: Praeger Publishers, 2007. ^ a b "Indian Gaming Facts". Archived from the original on 2006-11-05. Retrieved 2006-04-02. ^ a b c d Welch, Deborah. Contemporary Native American Issues: Political Issues. Chelsea House Publishers, 2006. ^ "Interactive Map: Sports Betting in the U.S." American Gaming Association. Retrieved January 11, 2024. ^ Lambert, Troy (18 July 2017). "Supreme Gamble: The Professional and Amateur Sports Protection Act". Huffington Post. ^ "N.J. Gov. Chris Christie: "Let them try to stop us" from sports betting". Associated Press. May 25, 2012. Retrieved March 16, 2018 – via CBS News. ^ Liptak, Adam; Draper, Kevin (May 14, 2018). "Supreme Court Ruling Favors Sports Betting". New York Times. ^ de Vogue, Ariane; Vazquez, Maegan (May 14, 2018). "Supreme Court lets states legalize sports gambling". CNN. Retrieved 2018-05-14. ^ "How close is my state to legalizing sports betting?". ESPN.com. June 11, 2018. Retrieved June 19, 2018. ^ Gregg, Katherine (June 19, 2018). "R.I. Senate committee passes budget bill". Providence, RI: Providence Journal. Retrieved June 19, 2018. ^ "Wanna bet? Here's where all 50 states stand on legalizing sports gambling". CBSSports.com. Retrieved 2021-11-15. ^ "Study: US sportsbooks post record US$7.5bn revenue in 2022". SportsPro. 17 February 2023. ^ Vrentas, Jenny (2024-02-04). "N.F.L.'s Rapid Embrace of Gambling Creates Mixed Signals". The New York Times. ISSN 0362-4331. Retrieved 2024-02-04. ^ a b c d Fucillo, David (2018-09-24). "Here's every state you can bet on sports, MAPPED". SBNation.com. Retrieved 2019-11-14. ^ Hoffman, Amber (2023-03-22). "Arkansas Sports Betting". GamingToday.com. Retrieved 2023-03-27. ^ Lehman, Tom (May 31, 2018). "Delaware to Begin Offering Full-Scale Sports Betting on Tuesday". Salisbury, MD: WBOC-TV. Retrieved May 31, 2018. ^ Lehman, Tom (June 5, 2018). "Delaware Launches Expanded Sports Betting". Salisbury, MD: WBOC-TV. Retrieved June 5, 2018. ^ Gothner, Chris (2019-05-14). "Gov. Kim Reynolds approves bill to legalize sports betting in Iowa". KCCI. Retrieved 2019-11-14. ^ "How will sports betting work in Kentucky?". Lexington, KY: WKYT-TV. March 31, 2023. ^ "What to expect as sports betting begins in Kentucky on Thursday". Lexington, KY: WLEX-TV. September 7, 2023. ^ Sentell, Will (2020-11-04). "Louisiana parishes embrace sports betting. So when might it start?". Advocate.com. Retrieved 2021-10-29. ^ Rogers, Sam (2022-05-06). "Hold on to your sports bets for now, Mainers". www.newscentermaine.com. Retrieved 2023-05-15. ^ Rogers, Sam (2023-11-02). "Maine launches sports betting". www.newscentermaine.com. Retrieved 2023-11-08. ^ Reindl, JC (January 19, 2021). "Michigan legal online gambling and sports betting to start Friday". Detroit Free Press. Retrieved 29 January 2021. ^ Goldberg, Rob (August 1, 2018). "Mississippi Joins Delaware, New Jersey as States to Allow Legal Sports Betting". Bleacher Report. Retrieved August 9, 2018. ^ Dorson, Jill R. (April 18, 2019). "Montana First to Send Sports Betting Bills To Governor". Sports Handle. Retrieved May 8, 2019. ^ Ramer, Holly (July 12, 2019). "NH legalizes sports betting". seacoastonline.com. AP. Retrieved July 13, 2019. ^ @GovChrisSununu (July 12, 2019). "Today I signed HB480 into law, legalizing sports betting in NH" (Tweet). Retrieved July 13, 2019 – via Twitter. ^ Edelson, Stephen (August 23, 2018). "NJ sports betting: Will Monmouth Park be online by start of NFL season?". Asbury Park Press. Retrieved January 23, 2019. ^ Rodenberg, Ryan (1 May 2020). "United States of sports betting: An updated map of where every state stands". ESPN.com. ^ Grubb, Harrison (January 8, 2022). "Online Sports Betting Is Officially Legal In NY. Here's What To Know". Gothamist. Retrieved January 11, 2022. ^ Staff (July 27, 2021). "Dakota Nation Sports Book to Launch in Fall". Indiangaming.com. Retrieved October 29, 2021. ^ Butler, Ryan (March 23, 2021). "North Dakota Legislature Rejects Online Sports Betting Ballot Measure Bill". Actionnetwork.com. Retrieved October 29, 2021. ^ "Sports Gaming". casinocontrol.ohio.gov. Ohio Casino Control Commission. Retrieved 5 May 2023. ^ Rotstein, Gary (September 4, 2018). "No legal sports betting yet in Pennsylvania, but it's on the way". Pittsburgh Post-Gazette. Retrieved November 21, 2018. ^ "South Dakota Constitutional Amendment B, Deadwood Sports Betting Legalization Amendment (2020)". Ballotpedia. Retrieved 2021-01-15. ^ Allison, Natalie (April 30, 2019). "Tennessee Governor to allow sports betting to become law without signature". The Tennessean. Retrieved May 8, 2019. ^ Tang, Jenny (2024-01-12). "Vermont Online Sports Betting Launches with Three Sportsbooks Live". Gambling Industry News. Retrieved 2024-01-14. ^ Harrison-Millan, Robin (May 8, 2019). "Washington DC sports betting legislation becomes law". Retrieved May 9, 2019. Abt, Vicki, James F. Smith, and Eugene Martin Christiansen, eds. The business of risk: Commercial gambling in mainstream America (University Press of Kansas, 1985). Burnham, John C., ed. Bad Habits: Drinking, smoking, taking drugs, gambling, sexual misbehavior and swearing in American History (NYU Press, 1992). Chafetz, Henry. Play the Devil: A History of Gambling in the United States from 1492 to 1955 (1960), popular history. Clotfelter, Charles T., and Philip J. Cook. Selling hope: State lotteries in America (Harvard  UP, 1991). Findlay, John M.  People of Chance: Gambling in American Society from Jamestown to Las Vegas (Oxford University Press, 1986). Haller, Mark H. "The changing structure of American gambling in the twentieth century." Journal of Social Issues 35.3 (1979): 87-114. Lears, Jackson. Something for Nothing: Luck in America (2003). Lang, Arne K. Sports betting and bookmaking: An American history (Rowman & Littlefield, 2016). O'Brien, Timothy L. Bad Bet: The Inside Story of the Glamour, Glitz, and Danger of America's Gambling Industry (1998). Sallaz, Jeff. The labor of luck: Casino capitalism in the United States and South Africa (U of California Press, 2009). Thompson, William N. Gambling in America: An encyclopedia of history, issues, and society (Abc-Clio, 2001). This page was last edited on 11 May 2024, at 23:36 (UTC). additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.